The White House is panicking today after Kansas, Texas and Louisiana came together to file a lawsuit against the federal government about the Obamacare tax.
According to WND, the lawsuit challenges the health-insurance provider fee on several grounds, including the tenth amendment.
“They argue that the fee is ‘an unconstitutional tax on the plaintiff states in violation of the Tenth Amendment of the United States Constitution and the doctrine of intergovernmental tax immunity,’” legal expert Hans von Spakovsky wrote about the lawsuit, adding that the federal government “has no right to tax state governments.”
The lawsuit argues that since Obamacare requires states to pay insurance fees, it amounts to a tax on states. It also argues that states were not given “clear notice” about the massive cost of Obamacare.
“It is important to note that this lawsuit is not over the Medicaid expansion that was part of the Obamacare law and that states like Texas refused to accept. This is about a fee that the Obama administration, through the IRS, is now imposing on states as a condition of continuing to receive federal funds for the basic Medicaid and CHIP programs,” von Spakovsky explained.
“There is no question that this is a serious lawsuit raising substantive issues against the Obamacare law and the way it has been implemented in relation to Medicaid and other federal health insurance programs,” he added. “A win by the states could knock a substantial hole in the financing of the Obamacare program. The question now is how quickly the case will move through the courts, and how many other states will join the suit.”
Texas Attorney General Ken Paxton spoke out to praise the lawsuit.
This threat to cut Medicaid funding to Texans unless the state continues to pay hundreds of millions in taxes to Washington amounts to the very ‘gun to the head’ the Supreme Court warned about in earlier rulings on Obamacare,” Paxton said.
“Not only is the federal government threatening the health care needs of millions of Texans, but it is doing so using Texans’ own money, collected from them through taxes,” he added. “This represents yet another huge overstep of authority for this administration, which once again has demonstrated their willingness to circumvent the Constitution in order to achieve their policy goals.”
We applaud these states for taking a stand against Obama. We can only hope that this lawsuit DESTROYS Obamacare for good!
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